Deposit Obligation For Assignments To Switzerland

Published date02 August 2021
Subject MatterEmployment and HR, Immigration, Contract of Employment, Employee Benefits & Compensation, General Immigration
Law FirmCONVINUS
AuthorMs Friederike V. Ruch

In practice, we have noticed that the existing deposit requirement for assignments to Switzerland in various sectors is also an aspect that is sometimes somewhat neglected. The competent authorities have gained a great deal of experience in this area since its introduction in January 1, 2018.

Foreign companies posting employees to Switzerland who are subject to a generally binding collective labour agreement (CLA) are required to pay a deposit. The basis for the existing deposit obligation in Switzerland is the Federal Council Decree declaring the collective labour agreement of the individual sectors generally binding and the Federal Act on Accompanying Measures for Posted Workers and on the Control of Minimum Wages Regulated in Normal Contracts of Employment (Posted Workers Act).

Why does such a deposit have to be made? The deposit is intended to ensure that all claims of the Joint Professional Commission (PBK) under the collective employment contract, in particular contractual penalties, control and procedural costs, as well as contributions to further training and enforcement costs, are paid.

In the table on the next page you can see in which sector and in which canton such a deposit obligation exists. On the homepage of the ZKVS (Zentrale Kautions- und Verwaltungsstelle Schweiz) http://www.zkvs.org you can also download the corresponding information sheets according to the branch.

The deposit must be paid only once. This means that if a deposit has already been made for an order, and if the order has already been completed but the deposit has not yet been repaid, it can be credited.

The amount of the deposit is determined by the provisions of the collective labour agreement applicable to the sector in question and the total value of the contract per calendar year. If the total contract value exceeds CHF 2,000, a deposit is payable. As a rule, the amount of the deposit is as follows:

If no proof of the effective amount of the order can be provided, the highest deposit is always due. The deposit can be made either by means of a guarantee certificate or in cash. The deposit paid will be subject to interest at the applicable bank rate and will be paid out after release of the deposit and after deduction of the administrative costs. If the deposit is to be made by means of a guarantee certificate, an irrevocable guarantee declaration must be provided by a bank or insurance company subject to the Swiss Financial Market Supervisory Authority (FINMA). The...

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